The controversy between the United States and its trading partners continues to heat up, triggering investor concerns about the global economic slowdown. Lagarde, president of the International Monetary Fund (IMF), sent a letter to the G20 (G20) stating that the tariff measures implemented and planned by China and the United States will lead to global economic evaporation of $455 billion next year, equivalent to a decrease in global GDP. 0.5%, even exceeding South Africa’s national GDP. In her letter, she called for the elimination of trade barriers that have already been implemented, so as to avoid more obstacles to trade.
Later, when Lagarde was interviewed by Reuters, he pointed out that the global recession has not yet been seen. It is expected that global growth will be 3.3%. I believe that the US economy will also have a strong performance.
Earlier, the IMF had lowered its forecast for China’s economic growth next year to 6.2%, due to uncertainty about trade frictions. It also pointed out that if the China-US trade war escalates, it will not rule out that monetary policy will be more relaxed.